Bitcoin prices skyrocket after Powell says US has no plans to ban cryptography

Texas News Today

Bitcoin and other cryptocurrencies surged next Friday, when Federal Reserve Board Chairman Jerome Powell said there were no plans to ban cryptocurrencies in the United States.

Bitcoin rose 9.4% to $47,528.91 by Thursday at 5 p.m. ET, its highest level in nearly two weeks. Ether, the second-largest cryptocurrency by market cap, gained 8.7% to $3,230.46 over the same period.

There was no clear trigger for the notorious and volatile digital currency surge that occurred on Friday morning. Some traders pointed to Powell’s remarks on Thursday’s House Financial Services Commission and early Friday’s fourth quarter, when investors may reset their portfolios.

Bitcoin slipped last week after China’s central bank declared cryptocurrency-related transactions illegal.

Photo:
Kitchn / The Associated Press

Regulatory concerns have continued to cover cryptocurrency prices in recent months. Bitcoin slipped last week after China’s central bank declared cryptocurrency-related transactions illegal, reinforcing the country’s tough stance on digital rivals for government-issued money.

During a question at the House Financial Services Commission, Powell was asked whether he intends to ban or limit the use of cryptocurrencies like in China.

“I have no intention of banning them,” he said, but stablecoins, a cryptocurrency whose value is pegged to government-issued currencies such as the dollar, “is like a money market fund and a bank. but they are somewhat outside the purview of regulation and it is appropriate to be regulated.”

The comments showed no apparent change in policy, but crypto traders welcomed the Fed’s stance.

Naeem Aslam, chief market analyst at brokerage firm AvaTrade, said:

Cryptocurrency boom drives digital exchange Coinbase Global’s stake Ltd.,

This resulted in an increase of over 3% in pre-market transactions.

Bitcoin miners in China have long dominated the global processing power operating the bitcoin network with access to sophisticated equipment and cheap electricity. But now, a group of American miners with deep pockets want to conquer a sizable portion of the industry. Photo: Adam Chapman from The Wall Street Journal

write to Caitlin Ostroff ([email protected])

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Bitcoin prices skyrocket after Powell says US has no plans to ban cryptography

Source link Bitcoin prices skyrocket after Powell says US has no plans to ban cryptography

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